Hi, please help me answer this questions attached for Auditing

ACC3510 - AUDITING - OFF-CAMPUS - SEMESTER 2, 2017 ASSIGNMENT (INDIVIDUAL) Submission information Weighting This assignment accounts for 10% of the assessment in this unit. Week Week 8 - as per Unit Plan as per page 10 Method Electronic submission via Turnitin to the lecturer given on pages 10 & 11 of the Unit Plan Learning outcome/s and Graduate Attributes Completing this assignment will help you achieve the Learning Outcome/s and ECU Graduate Attributes as described on page 13 of the Unit Plan: Preparation and assignment instructions For this assignment students are required to complete all FOUR of the following questions : Chapter 1: relates to Week 1 Question 1 REQUIRED: Why is it necessary to have independent audits ? Chapter 3: relates to Week 2 Question 2 You have been asked by your client, Bolts Ltd (Bolts), to prepare a report that analyses the potential acquisition of Steel Pty Ltd (Steel). Prior to conducting your analysis, you decide to verify the accuracy and completeness of the cash flow statement provided by Steel for the year ended 30 June 2017. After reviewing a draft of your analysis, the CFO of Bolts has asked you to focus your attention on the sales and profitability of Steel and to avoid the distraction of cash flow reporting. He suggests that the acquisition will provide substantial future financial benefits to Bolts and that confusing the Board with cash flow issues would not be helpful to the acquisition or to the likelihood of your being asked to undertake similar engagements in the future. REQUIRED: List two threats to compliance with the fundamental principles that may exist resulting from your discussion with the CFO, and identify the fundamental principles at risk of being breached. Page 1 of 3 Chapter 2: relates to Week 3 Question 3 Your firm has been the auditor of WellRead Ltd (WellRead) for a number of years. WellRead is an online book retailer listed on the Australian Securities Exchange. You have always had a good working relationship with the directors and with senior management. Past audits have run smoothly and the financial reports of WellRead have always been unmodified. The company has 30 June year end. In 2014, WellRead decided to install a new accounting system specifically designed to accommodate all of WellRead's accounting and reporting requirements. Both your firm and WellRead's internal audit division reviewed the system prior to implementation and found it to be satisfactory. WellRead is your largest client and has the most complex accounting system that the audit department has had to deal with. The first year in which the new system was operating you engaged an expert to assist in the development of specialised audit software that was to be significantly relied on during the audit. This software is still used and is now maintained your IT audit department. In March 2017, WellRead's internal audit department discovered that due to a programming problem, the application of the percentage of completion method of accounting for projects was inaccurate. As a result, revenue figures for each of the three preceding year's financial reports have been materially misstated. It is now August 2017 and the company has just commenced legal action against your firm. WellRead claims that the past three years' audits were negligently performed, given the problems with the accounting systems and the undiscovered material misstatements in the financial reports. REQUIRED: Identify the relevant issues in deciding whether your firm has been negligent in the performance of its duties as the auditor of WellRead. Chapter 4: relates to Week 4 Question 4 You are a junior auditor working for the local arm of Checkers & smith Pty Ltd (C&S) an international CA firm. You graduated last year and have been working in audit at C&S since graduation. Lion Pty Ltd (Lion) is an Australian independent publisher. Lion has a specialist line of education titles for the Education Department of the Government of Brastan Islands, which are printed in the native language of the islands. Sales to Brastan Islands are Lion's only export sales. The Brastan Island's Education Department pays for shipments of books which are delivered twice per year, so that new textbooks are available at the start of the school year and just before the start of the second semester (a significant proportion of students in the Brastan Islands only attend school in the second half of the year). Lion is responsible for the insurance and shipping costs, and title passes when the books come into the Education Department's possession. Page 2 of 3 The first order of textbooks was received by Lion on 7 January 2017. The order was processed, the revenue booked and the textbooks shipped on 8 January 2017. The second order of textbooks was received by Lion on 25 June 2017. The order was processed, the revenue booked and the textbooks shipped on 26 June 2017. The first order arrived in the Brastan Islands on 21 January 2017. The second order arrived on the 8 July 2017. Payment for all books is in Australian dollars. Assume that the value of the books is material. You are the audit senior on the Lion audit. You have been presented with the audit plan which identifies that the shipment of books to the Education Department of Brastan represents an audit risk. ACCOUNT BALANCE KEY ASSERTION 1. Sales 2. Inventory 3. Trade debtors Cut-Off Rights and obligations Cut-off REQUIRED: (a) For each account balance listed in the table above, identify whether the listed key assertion is correct. (b) For each incorrect key assertion identified in (a) above, explain why it is not correct. (c) For each incorrect key assertion identified in (a) above, identify the correct assertion. (d) Justify your answers to (c) above. Please type your solutions in a Word document, starting each solution on a new page. It is recommended that students complete the questions as they have completed their studies of the relevant week's syllabus. Resources Please refer to the resources available in \"Annotated reading list\